The ongoing conflict between Russia and Ukraine has led to an unexpected surge in copper demand, as reported by industry experts. The extensive use of copper-containing munitions has significantly increased the need for the red metal. This heightened demand is reflected in the robust production of munitions, with factories worldwide stepping up their output to replenish depleted stocks.
The war, which has been described as metals-intensive, consumes many tonnes of copper daily. Analysts predict that the aftermath of the conflict could result in a substantial amount of copper scrap in Ukraine, potentially comparable to a new mine. The increased production of brass, an alloy of copper and zinc used in bullet casings, is also contributing to the rising demand for copper.
As munitions factories globally accelerate production, the NATO 155 mm artillery shells, each containing 0.5 kg of copper, are being used at an unprecedented rate. The European Defence Agency (EDA) reports that up to 7,000 of these shells are fired daily by Ukraine. Russia's equivalent, the 152 mm shell, is also being produced and used in large quantities, with estimates suggesting millions of shells fired per year.
This surge in military demand for copper is influencing global markets, with prices showing resilience despite the overall base metals market experiencing fluctuations. The war's impact on copper demand underscores the broader implications of geopolitical conflicts on commodity markets.
